Frost Radar in the Australian Data Center Market
Published on: 02-Apr-2020 | SKU: IT04029-AP-MR_24055

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Australia is one of the most mature data center services markets in the Asia-Pacific region. Despite facing intensifying competition from other countries in the region, including Singapore and Malaysia, the market continues to expand.

Growth has been driven mostly by hyperscale cloud vendors, large enterprises, and highly regulated verticals (banking, financial services, and insurance is an example) that require strict data confidentiality and complete management control of their operations. Hyperscale public cloud service providers have been driving demand for data center services in Australia, particularly in the cities of Sydney and Melbourne. Many global public cloud providers (such as Amazon Web Services, Microsoft, and Google) have significantly increased their uptake of wholesale data center capacities in recent years.

The increasing demand for hyperscale cloud services, the exponential increase in enterprise data, small and medium enterprises’ outsourcing of data center services, and government initiatives undertaken to boost data center growth are among the primary drivers of data center services in Australia.

The market also faces some restraints, such as lack of trained manpower to handle complex data center processes, rising electricity prices, and a lack a comprehensive understanding of power and cooling needs. Escalating costs in the Sydney Central Business District region, especially with regard to average price of prime land, have resulted in Australia’s cloud providers and multinational corporations looking to base local operations in other cities. Perth is emerging as an attractive city in terms of international connectivity to global markets.

A total of 8 companies were analyzed and evaluated for growth and innovation leadership.

The Frost Radar reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar methodology. The document presents competitive profiles on each of the companies in the Frost Radar based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients.

Industry Overview

The Frost Radar—Australian Data Center Market

Frost Radar—Description of Companies Plotted

NEXTDC

Canberra Data Centres

Equinix

Digital Realty

NTT Ltd.

Global Switch

Fujitsu

Airtrunk

The Last Word—Key Takeaways

Legal Disclaimer

Frost Radar—2 Major Indices, 10 Analytical Ingredients, 1 Platform

Frost Radar—2 Major Indices, 10 Analytical Ingredients, 1 Platform (continued)

Frost Radar—C2A

Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform

Growth Index

Growth Index (GI) is a measure of a company’s growth performance and track record, along with its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline system; and effective market, competitor, and end-user focused sales and marketing strategies.

  • Market Share (previous 3 years)
    This is a comparison of a company’s market share relative to its competitors in a given market space for the previous 3 years.
  • Revenue Growth (previous 3 years)
    This is a look at a company’s revenue growth rate for the previous 3 years in the market/industry/category that forms the context for the given Frost Radar™.
  • Growth Pipeline
    This is an evaluation of the strength and leverage of a company’s growth pipeline system to continuously capture, analyze, and prioritize its universe of growth opportunities.
  • Vision and Strategy
    This is an assessment of how well a company’s growth strategy is aligned with its vision. Are the investments that a company is making in new products and markets consistent with the stated vision?
  • Sales and Marketing
    This is a measure of the effectiveness of a company’s sales and marketing efforts in helping it drive demand and achieve its growth objectives.

Innovation Index

Innovation Index (II) is a measure of a company’s ability to develop products/ services/ solutions (with a clear understanding of disruptive Mega Trends) that are globally applicable, are able to evolve and expand to serve multiple markets and are aligned to customers’ changing needs.

  • INNOVATION SCALABILITY
    This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals.
  • RESEARCH AND DEVELOPMENT
    This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline.
  • PRODUCT PORTFOLIO
    This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue.
  • MEGATRENDS LEVERAGE
    This is an assessment of a company’s proactive leverage of evolving, long-term opportunities and new business models, as the foundation of its innovation pipeline.
  • CUSTOMER ALIGNMENT
    This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.

Significance of Being on the Frost Radar™

Companies plotted on the Frost RadarTM are the leaders in the industry for growth, innovation, or both. They are instrumental in advancing the industry into the future.

  • GROWTH POTENTIAL
    Your organization has significant future growth potential, which makes it a Company to Action.
  • BEST PRACTICES
    Your organization is well positioned to shape Growth Pipeline™ best practices in your industry.
  • COMPETITIVE INTENSITY
    Your organization is one of the key drivers of competitive intensity in the growth environment.
  • CUSTOMER VALUE
    Your organization has demonstrated the ability to significantly enhance its customer value proposition.
  • PARTNER POTENTIAL
    Your organization is top of mind for customers, investors, value chain partners, and future talent as a significant value provider.

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Impacting your company's future growth potential.

Australia is one of the most mature data center services markets in the Asia-Pacific region. Despite facing intensifying competition from other countries in the region, including Singapore and Malaysia, the market continues to expand. Growth has been driven mostly by hyperscale cloud vendors, large enterprises, and highly regulated verticals (banking, financial services, and insurance is an example) that require strict data confidentiality and complete management control of their operations. Hyperscale public cloud service providers have been driving demand for data center services in Australia, particularly in the cities of Sydney and Melbourne. Many global public cloud providers (such as Amazon Web Services, Microsoft, and Google) have significantly increased their uptake of wholesale data center capacities in recent years. The increasing demand for hyperscale cloud services, the exponential increase in enterprise data, small and medium enterprises’ outsourcing of data center services, and government initiatives were undertaken to boost data center growth are among the primary drivers of data center services in Australia. The market also faces some restraints, such as a lack of trained manpower to handle complex data center processes, rising electricity prices, and a lack of a comprehensive understanding of power and cooling needs. Escalating costs in the Sydney Central Business District region, especially with regard to the average price of prime land, have resulted in Australia’s cloud providers and multinational corporations looking to base local operations in other cities. Perth is emerging as an attractive city in terms of international connectivity to global markets. A total of 7 companies were analyzed and evaluated for growth and innovation leadership. The Frost Radar reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar methodology. The document presents competitive profiles on each of the companies in the Frost Radar based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients.
More Information
Deliverable Type Frost Radar
No Index No
Podcast No
Author Siddhesh Hule
Industries Information Technology
WIP Number PABC-01-00-00-00
Is Prebook No
GPS Codes 9679-C1,9702-C1,9705-C1,9658,9609

Frost Radar in the Australian Data Center Market

Information TechnologyFrost Radar in the Australian Data Center Market

A Measurement System to Spark Companies 2 Action (C2A)—Innovation That Fuels New Deal Flow and Growth Pipelines

RELEASE DATE
02-Apr-2020
REGION
Asia Pacific
Deliverable Type
Frost Radar
Research Code: PABC-01-00-00-00
SKU: IT04029-AP-MR_24055
AvailableYesPDF Download
$4,950.00
In stock
SKU
IT04029-AP-MR_24055